StandardAero price target lowered to $32 from $34 at BofA

BofA lowered the firm’s price target on StandardAero (SARO) to $32 from $34 and keeps a Neutral rating on the shares. StandardAero received “a lackluster response from the market” after reporting on their first quarter as a public company, notes the analyst, who points out that shares have traded down about 11% since the company came public on October 2. The firm, which lowered its 2024-2027 adjusted EPS estimate on higher-than-expected costs, sees a path forward for greater margin appreciation driven by the Component Repair Service, or CRS, segment, but notes that the timing and meaningful inflection “may require more patience.”